FCC Approves Townsquare Spin Of 3 Iowa Stations Into Trust ... With A Time Limit
November 8, 2013 at 10:43 AM (PT)
The FCC has approved the transfer of three stations by TOWNSQUARE MEDIA into a spinoff trust, the CEDAR RAPIDS DIVESTITURE TRUST, allowing TOWNSQUARE to comply with ownership caps so that it can complete the acquisition of several stations from CUMULUS MEDIA. Stations being spun off include Top 40 KKHQ (Q92.3)/OELWEIN, IA; Classic Rock KCRR/GRUNDY CENTER, IA; and Country KOEL-F (K98.5)/CEDAR FALLS, IA.
The Commission is subjecting the spinoff to the condition that the stations be assigned within two years to one or more third parties. The trust, headed by ALLEN L. BLUM, must report on its efforts to sell the stations every six months in the meantime. The sale time limit differs from previous CLEAR CHANNEL and CUMULUS spinoff trust arrangements, which had no time limit but were dealing, the FCC notes, with a recession.
"The economic situation today is substantially different compared to 2008 or even 2011," the FCC said in adding the time limit. "The credit market for broadcast transactions appears to have substantially, if not fully, recovered. Under current conditions, we find that a reasonable limitation on the duration of a divestiture trust will best serve the public interest by requiring the parties to a trust agreement to meet a deadline to place the Stations with a new operator to ensure long-term compliance with the requirements of the Local Radio Ownership Rule."
Commission Nixes Pair Of LPFM Applications Near Seattle
The Commission also dismissed mutually exclusive applications by CALVARY CHAPEL OF BREMERTON and BAINBRIDGE ISLAND BROADCASTING for low power FMs at BREMERTON and BAINBRIDGE ISLAND, WA, respectively. The proposed facilities are significantly shortspaced to full power FIRST BROADCASTING Classic Hits KMCQ (Q104.5)/COVINGTON, WA.